Investing in rental properties seems like an excellent idea–until it becomes a full-time job. Then, do you find yourself spending too much time maintaining properties and communicating with tenants? Hiring property management can be highly beneficial if you’re just starting in the rental business or have too many properties to keep up with. Read along as we go over when it’s time to outsource property management tasks.
Contents of This Article:
- Who Performs Property Management?
- When Is It Time to Outsource Property Management Tasks?
- What Kind of Property Manager Do You Need?
- How to Choose the Right Company for Your Business
Who Performs Property Management?
Unless you outsource, you’re generally responsible for all management tasks when you buy a rental property. Property management can quickly become a full-time job, depending on what type of property you purchase and how many you own.
However, if you’re looking to make passive income, it’s hard when you’re busy performing all the necessary tasks. As such, it’s important to know when it’s time to outsource property management tasks to a reliable professional. Here’s when it’s time to hire your local Philadelphia property management company.
When Is It Time to Outsource Property Management Tasks?
Most investors know when it’s time to outsource property management tasks. However, if you find yourself highly overwhelmed with communication, marketing, maintenance, and more–it’s time to hire a property manager or management company.
- You Own Several Rentals
- Your Property Is Out of Town
- Legal Issues Stress You Out
- Rent Collection Is Falling Behind
- You Want to Expand Your Portfolio
- Maintenance is Overlooked
- You Notice an Increase in Vacancies
You Own Several Rentals
Owning just one rental property can get out of hand at times. However, if you own several rentals, there are even more responsibilities. For instance, you have to market each property, communicate and follow up with prospective tenants, create contracts, collect rent payments, perform maintenance, and so much more.
Sometimes, there’s not enough time in the day to get all of these tasks done for each rental property. As such, if you own several rentals, consider hiring a reputable property management company to help complete these tasks.
Your Property Is Out of Town
Another reason to outsource property management tasks is if you don’t live near your properties. Many investors find great opportunities for rentals in other neighborhoods and states. However, living far away from a rental can cause significant issues.
For instance, it’s important to check up on tenants and perform maintenance or repairs when needed. But, if you don’t live nearby, it’s hard to get to your rental to see what’s happening. So, outsourcing maintenance, rent collection, and inspection tasks make owning rentals in another state easier.
Legal Issues Stress You Out
Owning rental properties requires a ton of legal compliance. While few landlords intentionally break the law, landlord-tenant laws can be confusing, and it’s easy to make mistakes without realizing it. For instance, you must know how to write a lease that protects you as a landlord but doesn’t discriminate against any tenants.
You must also follow the eviction process correctly to avoid legal and financial penalties. Each state has different laws and regulations for rental housing, and it’s crucial to stay up-to-date with all of them. However, reliable property managers are well-versed in all landlord-tenant laws so they can help you throughout every legal process.
Rent Collection Is Falling Behind
Collecting rent payments on time can be challenging if you own several rentals. However, it’s important that your tenants pay rent on time each month. After all, if you let one tenant slide on their rent payment, they could make it a habit.
When a property manager steps in to help, they ensure rent is paid on time and in full each month. Luckily, it’s pretty simple with the right rent collection software. Additionally, they can enforce late fees, start the eviction process, and find new tenants that will pay rent on time.
You Want to Expand Your Portfolio
If you’re managing one or two rentals by yourself but want to expand your portfolio, you may want to consider outsourcing tasks beforehand. After all, being a landlord requires a ton of hands-on work, and the tasks become more overwhelming with each rental you own.
Expanding your portfolio is a great way to bring in more short-term income and earn long-term gains through appreciation. However, it also means more work. Hiring property management can help relieve you of the tasks you have now and allow you to focus on growing your rental business.
Maintenance Is Overlooked
Keeping up with rental maintenance can be a ton of work alone. After all, you must ensure that your rentals are legally compliant and your tenants are happy. Slipping up or putting off important maintenance tasks can be detrimental to your rental business.
Since maintenance is one of the most important parts of your rental business, you don’t want to fall behind. Outsourcing maintenance tasks to a reliable property manager can relieve you of this stress and allow you to focus on other parts of your business.
You Notice an Increase in Vacancies
Vacancies are a nightmare for landlords. If you have nobody living in your rentals, you have no income–and you still have to pay bills for the property. However, excellent marketing skills and solid tenant screening procedures can help you reduce vacancies a ton.
Property managers know where and how to advertise rentals to find tenants faster. Additionally, they can help bring in quality tenants that will respect and care for your rental. Finally, property managers can help keep existing tenants happy with excellent communication, quick maintenance, and professionalism.
What Kind of Property Manager Do You Need?
Depending on the type of properties you own, you may look for certain types of property managers. For instance, residential property managers generally handle rental properties and the rental process. Some common types of properties that they manage include:
- Single-family homes
- Multifamily buildings
- Vacation rentals
However, management tasks look a bit different if you own commercial properties. Needs generally differ, but they handle rental processes at properties like hotels, offices, restaurants, and more. Similarly, industrial property managers handle industrial properties like manufacturing, warehouses, and distribution facilities.
Finally, if you own buildings like theaters, sports arenas, resorts, or universities, you’ll need a special-use property manager to handle these processes.
How to Choose the Right Company for Your Business
If you find yourself overwhelmed with too many properties and contracts to look after, it’s time to outsource property management tasks. However, finding the right management company is crucial to your rental business’s success. That’s why Bay Property Management Group offers comprehensive management services to busy local landlords.
If you’re looking for reliable property management, look no further than BMG. We cover several areas, including Baltimore, Philadelphia, Northern Virginia, and Washington DC. To learn more about our full-service property management, contact us today!